IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa10p1016.html
   My bibliography  Save this paper

A geosimulation model of economic activity for supporting spatial planning and economic policy

Author

Listed:
  • Jung Hun Yang
  • Dick Ettema
  • Koen Frenken
  • Frank van Oort
  • Evert-Jan Visser

Abstract

The present paper presents a geosimulation agent-based model of firm development that is based on firms' behavioural rules. The model describes growth, closure, spin-offs and relocation of firms in 21 industrial sectors in the Netherlands, based on a dataset of all individual firms in the Netherlands. An important aspect of the model is the potential interaction that exists between firms, which is represented by various agglomeration indicators. The indicators represent the effect of the distance to other firms, which may have implications fro market potential, agglomeration advantages and congestion/competition. By including positive and negative attraction effects a proper description of concentration and deconcentration tendencies is achieved. The interactions may take place on difference scales, depending on the type of effect (agglomeration advantage, competition for space) and economic sector. The interactions affect growth, closure and spin-off of the individual firms in the model. The model is applied to simulate the distribution of economic development in the Netherlands during a ten year period (1998-2007). The simulation results are then compared to existing 2007 data. This comparison confirms the effectiveness of the model. Simulation carried out with and without various positive and negative agglomeration factors indicate that including agglomeration factors into the model seriously adds to the quality of predictions.

Suggested Citation

  • Jung Hun Yang & Dick Ettema & Koen Frenken & Frank van Oort & Evert-Jan Visser, 2011. "A geosimulation model of economic activity for supporting spatial planning and economic policy," ERSA conference papers ersa10p1016, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa10p1016
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa10/ERSA2010finalpaper1016.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:dgr:rugsom:02d31 is not listed on IDEAS
    2. Daniel Griffith & David Wong, 2007. "Modeling population density across major US cities: a polycentric spatial regression approach," Journal of Geographical Systems, Springer, vol. 9(1), pages 53-75, April.
    3. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
    4. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    5. Keld Laursen & Volker Mahnke & Per Vejrup-Hansen, 1999. "Firm Growth from a Knowledge Structure Perspective," DRUID Working Papers 99-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    6. Daan P. Van Soest & Shelby Gerking & Frank G. Van Oort, 2006. "Spatial Impacts Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 46(5), pages 881-899, December.
    7. van Soest, D.P. & Gerking, S.D. & van Oort, F.G., 2002. "Knowledge Externalities, Agglomeration Economies, and Employment Growth in Dutch Cities," Other publications TiSEM d3b82b0f-1b50-4845-98ce-8, Tilburg University, School of Economics and Management.
    8. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    9. Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, vol. 22(3_4), pages 179-192, April.
    10. Kelly, Morgan & Hageman, Anya, 1999. "Marshallian Externalities in Innovation," Journal of Economic Growth, Springer, vol. 4(1), pages 39-54, March.
    11. Joris Knoben & Roderik Ponds & Frank van Oort, 2011. "Employment from new firm formation in the Netherlands: Agglomeration economies and the Knowledge Spillover Theory of Entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(3-4), pages 135-157, April.
    12. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
    13. Frank van Oort & Martijn Burger & Otto Raspe, 2010. "On the Economic Foundation of the Urban Network Paradigm: Spatial Integration, Functional Integration and Economic Complementarities within the Dutch Randstad," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 725-748, April.
    14. Jouke van Dijk & Piet H. Pellenbarg, 2000. "Firm relocation decisions in The Netherlands: An ordered logit approach," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 191-219.
    15. Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004. "The firm relocation decision: An empirical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 335-347, June.
    16. Leo van Wissen, 2000. "A micro-simulation model of firms: Applications of concepts of the demography of the firm," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 111-134.
    17. Daan P. Van Soest & Shelby Gerking & Frank G. Van Oort, 2006. "Spatial Impacts Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 46(5), pages 881-899, December.
    18. Pellenbarg, P.H. & Wissen, L.J.G. van & Dijk, J. van, 2002. "Firm relocation: state of the art and research prospects," Research Report 02D31, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    2. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers 2012/9, Institut d'Economia de Barcelona (IEB).
    3. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    4. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342.
    5. Rafael Boix & Joan Trullén, 2004. "Knowledge, networks of cities and growth in regional urban systems: theory, measurement and policy implications," ERSA conference papers ersa04p85, European Regional Science Association.
    6. Evert Meijers & Martijn Burger & Martijn J. Burger & Evert J. Meijers, 2016. "Agglomerations and the rise of urban network externalities," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 5-15, March.
    7. Joshua Drucker, 2012. "The Spatial Extent of Agglomeration Economies: Evidence from Three U.S. Manufacturing Industries," Working Papers 12-01, Center for Economic Studies, U.S. Census Bureau.
    8. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    9. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    10. Francesca Mameli & Simona Iammarino & Ron Boschma, 2012. "Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries," Papers in Evolutionary Economic Geography (PEEG) 1203, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2012.
    11. Behr, Andreas & Schiwy, Christoph & Hong, Lucy, 2022. "Impact of Agglomeration Economies on Regional Performance in Germany," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 52(01), May.
    12. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    13. Eickelpasch, Alexander & Hirte, Georg & Stephan, Andreas, 2016. "Firms' Evaluation of Location Quality: Evidence from East Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 236(2), pages 241-273.
    14. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    15. Raffaele Paci & Stefano Usai, 2000. "The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 237-268.
    16. Burger, M.J. & van Oort, F.G. & van der Knaap, G.A., 2008. "A Treatise on the Geographical Scale of Agglomeration Externalities and the Modifiable Areal Unit Problem," ERIM Report Series Research in Management ERS-2008-076-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    17. Hamidi, Shima & Zandiatashbar, Ahoura & Bonakdar, Ahmad, 2019. "The relationship between regional compactness and regional innovation capacity (RIC): Empirical evidence from a national study," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 394-402.
    18. Michaela Fuchs & Udo Brixy, 2011. "How important are plant and regional characteristics for employment dynamics? Plant-level evidence for Germany," ERSA conference papers ersa10p243, European Regional Science Association.
    19. Stéphane Riou, 2003. "Géographie, croissance et politique de cohésion en Europe," Revue Française d'Économie, Programme National Persée, vol. 17(3), pages 171-220.
    20. Breandán Ó hUallacháin, 2011. "Does inventive intensity affect urban prosperity?," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(4), pages 401-420, November.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p1016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.